IMO, "extraordinary situation" means ambiguous since there is no ordinary situation in the market. Instead, as the white paper says, long-term conditions are more objective (still "long" is debatable).
True, that was purely my view, based on such a premium failing to honor the promise to convert into "1 USD worth of STEEM". It would systematically convert into less. The white paper does not give any situation where a premium would be charged, although the word premium does appear, suggesting it is possible.
This is an entirely different question from whether less discount is needed. As you know I have agreed with reducing discount.
As an aside, I don't think we can rely on @abit's conversion to measure a rate or trend. It is an outlier.
True. If we remove abit's from the calculation, the number is 12% (close to 3% per week)
3% per week is, in general, a dangerously low rate at this point. It means we can not tolerate more than one or two 50% price drops in the next 15 weeks (for perspective, we just had five) without reaching peg failure at 10%. Maybe we will get a little lucky and that won't happen, but going forward we will need a better plan (could include more aggressive action at lower debt ratios, where it is less painful, assuming we do get lucky and climb out of the current hole).
Sorry I cannot understand why "we can not tolerate more than one or two 50% price drops in the next 15 weeks" If STEEM price becomes 1/4 while SBD amount is the same, is the debt ratio around 18%? That is dangerously high number but will it trigger the black swan event?